Old Navy Credit Cards: How They Work

Where else can you get a shirt you'd actually wear for $5 or an entire outfit for less than $30? People love Old Navy for its stylish clothes at low prices. The store also has its own branded credit cards. Like most stores that have one, you’re likely to get the sales pitch for a card at the checkout. Should you say yes?

Key Takeaways

  • Old Navy offers both a closed loop and open loop card which is available based on your credit information.
  • The Old Navy card can be used at any Gap brand to earn points within the rewards program.
  • The card has an APR of 27.49%.

Not One Card-Two

Like most all store branded credit cards, customers may be eligible for either an open loop or closed loop card. Old Navy follows with the industry standard, offering the two similar but different cards. Open loop cards work like other standard cards, allowing you to make purchases anywhere the open loop Visa brand is accepted. The closed loop card only allows purchases with the store itself, though the Old Navy card has broader options discussed below.

The closed loop, Old Navy store card is easier to get, but if your credit is exceptional, you might qualify for the open loop, Old Navy Visa card. Both come with similar benefits. The open loop Visa card however, allows you to earn rewards at any place your Visa card is accepted. The store card is only accepted at Gap brand stores.

The Bank

The cards aren’t offered by Old Navy’s parent company. Synchrony Financial (SYF) is the card issuer. Synchrony Financial offers the cards through its Retail Card division which supports many private label credit cards. Synchrony Financial was founded in 2003. It was previously owned by General Electric until 2015 when it separated to become its own publicly traded company.

The company found itself in some legal hot water prior to its separation because of questionable financial practices but settled the case with the Consumer Financial Protection Bureau and the Department of Justice in June 2014. It might help to know that the company turned itself in rather than hoping regulators wouldn’t find out. After working through the issues it was separated.

The Card

Perhaps the greatest perk and appeal to the Old Navy card is its affiliation with the Gap brand. Since Old Navy is owned by Gap (GPS), the Old Navy card can be used at all Gap owned stores—Gap, Banana Republic, Athleta, and Piperlime. Gap and Banana Republic also offer their own cards by Synchrony Financial with similar terms as well.

Customers receive a $5 reward for 500 points earned after spending $100 at any Gap brick and mortar or online store. This translates to five points earned for every $1 spent and $1 in rewards for every 100 points earned. Customers can also accumulate points outside of Gap stores with the Old Navy Visa card. Old Navy Visa card customers receive one point for every $1 spent. Once you earn 500 points, you receive a $5 reward for redemption at any Gap brand store. 

When you sign up for the card you get a 20% discount on your first purchase. You can also get promotional notices by providing your email. Additionally, customers with the Old Navy card can plan on discounts for their birthday.

The Fine Print

The Old Navy card has no annual fee. The annual percentage rate (APR) is a pricey 27.49% for both the open loop and closed loop card. This rate is also variable so it can change with the prime rate. There is no special introductory rate, like some cards offer. 

If you pay late, you'll be charged a late fee of $39 but there is no penalty interest rate. If you use your open loop, Visa card outside of the United States, you will pay a 3% foreign transaction fee on every purchase. (If you’re a frequent international traveler, there are better cards to have in your wallet than this one.)

Cash advances for the Old Navy Visa card cost $10 or 4%, whichever is greater, and an APR of 28.49% applies. If you have a store card, cash advances aren’t available.

The Bottom Line

As with all credit cards, the Old Navy closed loop and open loop card will charge you interest. With an APR of 27.49%, your monthly statements will rack up some substantial interest charges. However, the closed loop card can be used at any Gap brand which provides a lot of versatility for shoppers. Loyal Gap brand customers can also benefit from the nice rewards program, offering five points for every $1 spent and $5 in rewards when accumulating 500 points. In addition, the card can help your credit if you are approved for it and make regular payments on time.

What can be important to keep in mind is the interest rate. At 27.49%, the card’s APR ranks near the top, with one of the higher interest rate levels in the business. Thus, while the card’s perks can be attractive overall, carrying a balance will generally wipe out any reward benefits once the interest is charged. Thus, many savvy credit users may seek to opt for a card with lower interest and/or other promotional reward offers like comprehensive reward points or cash back.